Lukoil: OPEC Deal Should Extend Into 2020 If US Oil Continues To Soar

If U.S. oil production continues to boom at the current pace, OPEC and Russia should extend their production cut pact into 2020, Leonid Fedun, the vice president of Russia’s second-largest oil producer Lukoil, said on Friday. “It will all depend on the American production,” Reuters’ Russian-language service quoted Fedun as saying on the sidelines of Lukoil’s investor day in London today. It is not clear yet how fast U.S. production will grow, the manager said. If the pace of growth continues, OPEC and Russia will need to exit the deal in 2020, Fedun said. By that time, the industry will have started to feel the impact of the slashed investment in exploration and production in the past years, Lukoil’s manager said. Lukoil should support the idea of OPEC’s de facto leader and biggest producer Saudi Arabia to extend the oil production cuts into 2019, Fedun added. In an interview […]